Feasibility Study & Market Research Services for India’s Travel & Tourism Sector

India's tourism segment is continuously reaping substantial economic growth with its rich heritage, diverse culture, and picturesque landscapes. According to WTTC, India’s tourism sector contributed 5% to the GDP in 2022. The revenue is estimated to reach USD 520 billion by 2030, coupled with employment creation of 53 million by 2029.

By doing market surveys for tourism sector, it is seen that the contribution of tourism to the GDPP is forecasted to reach 7.6% by 2034.  In 2023, there were 25,100 milliondomestic visits, and 92 million international tourists, as per KPMG. These figures underline various business opportunities and potential of the sector. The rise in demand for unique experiences, along with government initiatives, has been driving growth in hospitality as well as ancillary segments such as retail, F&B, adventure tourism, and various other segments.
 

The Indian government has been taking various measures to enhance the tourism segment.  These include the expansion of existing tourist circuits, boosting eco as well as adventure tourism, and improving connectivity through road, rail, and air networks. Union Budget caters to a special focus on raising the level of historical and religious places such as the Vishnupad and Mahabodhi Temple corridors, which were designed along the lines of the Kashi Vishwanath corridor. The GOI launched various other programs like Swadesh Darshan, Dekho Apna Desh and has relaxed visa laws for several countries to attract more international tourists. Such ventures are believed to create jobs, draw investment, and foster economic development in a range of sectors. 

Market Growth Drivers:

• India's middle class is becoming economically stronger, stimulating continuous growth in domestic and international tourism.
  
  
• It is observed through market research services for online tourism in India, the boom of online travel agencies such as Make MyTrip and Goibibo have changed the way Indians plan their holidays. The availability of information and booking features has advanced the travel trend.
  
  
• India's reputation for affordable and high-quality healthcare, coupled with its traditional healing practices, attracts approximately 8-10% of international travellers, significantly contributing to the country's tourism revenue.
  
  

• Social media forums have become effective platforms to promote unique and beautiful places that create a desire to travel. Influencers and travel bloggers fully influence Indian traveling trends and encourage travel to an Indian audience
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• India’s diverse tastes and flavours offer great potential for culinary tourism. International tourists have shown a great interest in local cuisines driving growth in the F&B sector. Also, avail the services from India Watch to get feasibility study for new restaurant in India.
  
  
• According to government projections, India will witness a rise in cruise tourism by approximately 1.2 million passengers by 2030-31 owing to the country's beautiful coastlines and maritime heritage.
  
  

Opportunities for the Hospitality Sector & Online Platforms:

Considering a confluence of factors, the Indian hospitality industry is expected to grow significantly. Expansion in the number of foreign tourists, which is expected to hit the figure of 30.5 million by 2028, creates a vast source of potential future growth for hotels, resorts, and other associated businesses in hospitality. This trend was further boosted during the 2023 G20 Summit enhancing the country’s image as a tourism hub and consequently facilitating infrastructure in the country. 

The plethora of popular archaeological sites and varying landscapes have been drawing tourists to India. Moreover, the presence of picturesque beach locations along with a variety of adventure sports such as trekking, skiing, and water sports increases the country’s attraction further. 

To capitalize on the growing opportunities, the hospitality sector and the need for feasibility study for a homestay in India is rising to give focus on providing more exclusive guest experiences by investing in technology, adopting sustainable practices, and integrating local flavours. Likewise, rather than standardizing too much, the focus now should be on custom-made services.   

Challenges & Gaps in the Segment:

• Inadequate Infrastructure: India currently operates 137 airports, but many airports lack infrastructure which results in limited connectivity for remote areas. According to the Ministry of Civil Aviation, hardly 60 of the 137 airports are linked by commercial flights, which leaves several regions under-resourced. India has a huge road network which is over 6 million kilometers, out of which approximately 1.85 million kilometers are paved highways, which makes it hard for tourists to reach remote locations.
  
  
• Safety Concerns: The National Crime Records Bureau (NCRB) has observed a rise in crimes against tourists, mostly in rural areas. Reports of crime against tourists, especially women along with the reports of harassment have impacted the perception of India as a safe tourist destination. Also, as we know India is prone to natural disasters such as floods, landslides, and cyclones, which have disrupted tourism in affected regions.
  
  
• Effects of Global Pandemics: According to the Indian Ministry of Tourism, the COVID-19 pandemic caused a major setback in the tourism sector. The foreign arrivals were decreased by over 75 percent in 2020. Even, as the traveling sector recovers, Tourists remain worried about the possibility of further outbreaks in the future.
  
  
• Poor Promotion and Branding: India lacks sufficient marketing for several potential tourism locations, especially those in rural or suburban areas. Even though India is one of the most popular travel destinations in the world, its lack of international recognition has caused it to rank 34th on the World Economic Forum's Travel & Tourism Competitiveness Index (2019).
  
  

How The India Watch can Help?

The India Watch is a leading market research & feasibility study advisory agency in India. The company has in-depth knowledge about tourism, hospitality, and other ancillary segments. We can assist in new ventures in the space with tailor made research solutions. Our range of services includes 

• Market research surveys to gauge consumer perception, brand loyalty, competition benchmarking etc.
  
  
• Feasibility study to open a hotel in India & resort projects.
  
  
• Feasibility studies for rental villas, F&Bs, restaurants, logistic companies, etc.
  
  
• Tailor made research and insights solutions for tourism start-ups
  
  
• Investor decks, capability decks, corporate presentation, etc. for tourism businesses in India.
   
• Thematic reports & white papers on the industry trends
  
  
• For any further information or for getting market research and feasibility study for hotel projects in India, feel free to drop us a mail at info@theindiawatch.com
  
  

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